Roll Rate is a financial metric used to measure the rate at which loans or accounts transition from one status to another, typically from current to delinquent. It helps lenders assess the risk of their loan portfolios by tracking how many accounts become overdue over a specific period. A higher roll rate indicates a greater likelihood of defaults, which can impact a lender's profitability. This metric is particularly important in the context of credit risk management. By analyzing roll rates, financial institutions can identify trends and make informed decisions about lending practices, risk mitigation strategies, and potential adjustments to interest rates or credit policies.